My last post (July 21st) made reference to several indicators that stocks' analyst use to declare a bottom in a bear market. One a half month later we are yet to see if that was a bottom or just a cojncidence of indicators, as the market is at the same level after several up and downs.

Now that the US Treasury has stepped in to save Fanny and Freddie, we are having a rally that could signal the start of the end of the financial crisis....or maybe could be the end of the start.

Thumbs Up?

After several weeks of continuing dropping stock markets, with a fall in bear territory for the S&P and the DJIA, last week we have seen a myriad of signals the market interpreted as an omen to better times and fueled a global rebound.

Signals for a bottom:
VIX: the volatility index briefly crossed in Tuesday the 30 level which is seen as a "buy" signal
Sentiment: The Merril Lynch sentiment indicator is at its lowest level in 30 years, which is also a buy signal.
Oil: Oil have fallen more than 10% from its historic high of 150 USD/barrel

Those weren't clear signals that we were in capitulation mood, the situation that many wait before declaring a bottom has been found. If this is a short term rally just time will tell, meantime ¡enjoy the ride!

Empezamos !

Inicio este blog respecto al dinero, como ganarlo (y perderlo) y los mercados en general.